Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The bank's loans, if sold at current market value, would be worth $600 million. What does Stealth bank’s net worth equal?
a. $120 million
b. $270 million
c. $1.02 billion
d. $970 million
b. $270 million
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Assume that for a particular firm's output price = $80, marginal cost = $30, average total cost = $25. Based on this information, the firm's Lerner Index is equal to:
A) 0.313. B) 0.375. C) 0.6. D) 0.625.
Moving upward along an LM curve, ________ quantity of real money balances is equally demanded as higher real incomes are accompanied by ________ interest rates
A) an increasing, rising B) an increasing, falling C) a decreasing, falling D) a constant, rising E) a constant, falling
Have unions been successful at raising wages for their members? What about raising wages for all workers?
What will be an ideal response?
About how much is the present value of $1 that will be paid to you in 3 years if the interest rate were 5%?
A. $1.14 B. $1.05 C. $1.00 D. $.86